Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Supply Chain > Exam 1 > Flashcards

Exam 1 Flashcards

1
Q

Supply chain consists of multiple types of flow, name the 3

A

information, product, and financial

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Stages of a supply chain:

A

supplier, manufacturer, distributor, retailer, custome

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

why are supply chain decisions important

A

Competitiveness requires an ability to adapt to changing technology and customer needs and desires

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is the objective of a supply chain

A

to maximize the overall value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is a performance measure for a supply chain

A

return on investment = (net profit)/(net assets)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

In a supply chain what affects net profit (numerator)

A

product sales, overhead, direct labor, freight, taxes and customs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

in a supply chain what affects net assets

A

inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

the stock of any item in an organization

A

inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

a specific unit of stock to be controlled in an inventory system

A

stock-keeping unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

When a supplier sets up a production line or a
distributor makes a shipment or a customer makes a
purchase, there is typically a fixed cost associated
with the setup or the shipment or the purchase.
Hence, the production or shipment or purchase lot
size can be larger than the immediate demand and
what is not immediately needed is kept in inventory.

A

economies of scale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

if a supply shortage or a price increase is anticipated, then inventory can be kept

A

speculation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

In such cases, the supplier starts production
before the planned release date and builds inventory
to meet the demand at product launch

A

smoothing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

procurement

A

what you pay to procure the item

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

is the time the duration that elapses between the time when the procurement/production order is placed until when the order is received

A

lead time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

dictates how frequently the inventory status is checked

A

inventory review scheme

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

MA: the inventory level is reviewed on a blank a basis

A

continuous

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

the planning horizon is blank and the demand parameter will continue to be at the blank value throughout this planning horizon

A

infinite, same

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

the demand rate is blank and blank, and arrives at a blank rate over time

A

known, continuous, constant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

although the item of interest can be an item in a larger inventory system, it is treated entirely independently of other items

A

single item

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

the blank parameters do not change over time. in particular, inflation rate is low

A

cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

the unit variable purchase cost is blank and does not depend on order quantity

A

constant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

the order delivery lead time is blank

A

zero

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

no blank are allowed, the demand must be satisfied

A

shortages

24
Q

Trade-off between the fixed order cost and variable inventory holding cost

A

EOQ

25
Q

lambda

A

demand rate (units/unit time)

26
Q

K

A

fixed order cost ($/order0

27
Q

c

A

unit variable purchase cost ($/unit)

28
Q

h

A

unit inventory holding cost ($/unit/unit time)

29
Q

q

A

order quantity (units)

30
Q

T

A

length of the inventory cycle (unit time)

31
Q

C(q)

A

average total cost per unit time ($/unit time)

32
Q

(total cost per cycle)/(cycle length)

A

C(q)

33
Q

when you take the first derivative of C(q), what do you get

A

annual ordering cost = annual inv. holding cost

34
Q

the reflection of the firm’s capabiltiy to contribute to the wealth of its shareholders by paying dividends

A

shareholder value

35
Q

what are the 2 types of fixed cost that a company can incur

A

ordering cost or setup cost

36
Q

Why might a company order from the supplier in bulk

A

the order cost is incurred regardless of the size of the order. Therefore, it may be more economical to order a large number of items in each order cycle

37
Q

includes all the expenses associated with placing an order

A

procurement costs

38
Q

demand is know with certainty

A

deterministic

39
Q

demand has uncertainties associated with it

A

stochastic

40
Q

2 problems when there is excess demand

A

back orders and lost of sales

41
Q

the time that elapses from the time at which we receive q units until the time the inventory level drops to zero and we order and receive q units again

A

inventory cycle

42
Q

formula to determine the length of an inventory cycle

A

T=q/lambda

43
Q

what are three costs incurred in the total cost per inventory cycle

A

Ordering cost, inventory purchasing cost, inventory holding cost

44
Q

since the entire demand has to satisfied, this term corresponds to the cost of doing business. Independent of the inventory policy, the purchasing cost for the entire demand lambda has to be incurred

A

c times lambda

45
Q

Suppose it takes 2 days for the order to be processed and 1 day for the coffee beans to
be delivered from Atlanta to Gainesville. How does this change the EOQ model?

A

if the assumption that the entire demand must be satisfied holds, then an order must be placed at a specific time to ensure the arrival of the order in a timely manner

46
Q

What would happen if the price of the coffee beans changed with order size?

A

Since the basic
EOQ model relies on the assumption that the unit cost does not change with the order
size, this aspect has to be taken into account explicitly.

47
Q

Suppose that the store managers also order packaged baked goods (such as biscotti)
and other items (such as Starbucks coffee mugs) from the distribution center. Is there
a benefit in combining the coffee bean orders with these orders?

A

The basic EOQ model relies on the basic assumption that the entire fixed ordering cost
is associated with the item of interest. In several practical settings, however, multiple
items may share the fixed cost

48
Q

When is an EOQ value realizable?

A

Consider a value of the unit procurement cost with the corresponding price- break points. If the EOQ value that corresponds to this particular procurement cost fals between the price-break points within which the unit procurement cost is valid, then the EOQ value is realizable

49
Q

if the order size exceeds the break-point quantity then the discount rate is applied to all units of the order

A

All units discount

50
Q

if the order size exceeds the break-point quantity then the discount rate is applied only to those units that are beyond the breakpoint

A

incremental discount

51
Q

the order quantity obtained under a finite replenishment rate is also referred to as

A

the economic production quantity

52
Q

what is the main difference when the replenishment rate is finite

A

when the replenishment rate is finite, we do not receive q units immediately

53
Q

What is the sweetspot in an EOQ model

A

where the average total cost per unit time is minimized

54
Q

if the demand during lead time is less than quantity

A

an order has to be placed in the previous period

55
Q

if the demand during lead time is greater than the quantity

A

an order has to be placed several previous period ahead

Supply Chain (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions